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Biggest subsidy keeping house prices high
iinvestor
Posts: 70 Forumite
Did you know the government paid £20 billion in housing benefits in 2009. And as rent/unemployment has risen over the last year that figure could be even higher last year. 40% of rents are paid by housing allowance.
As someone who knows many landlord, as well as people claiming housing allowance I can tell you the government is very generous.
People with two children in the south are routinely getting £15000 a year. And in london £25000 is not uncommon. This is tax FREE.
This is the biggest subsidy keeping house prices high.
Why do you think rents are rising? Housing Allowance. The landlord asks for more money and the Housing authority pay up, simple. Landlords are relaxed because they know government will not kick tenants out on the street. Even if un-employment rises the government will pay their rent.
The government has introduced a cap at £25k TAX FREE. But this is ridiculously generous.
An experienced teacher/Qualified, experienced Nurse earns around £33k a year before tax or £25k after. Can you imagine a young professional couple with 2 children being able to afford a house with £15k rent? NO But people on benefits can, curtsey of the taxpayer.
How can a market that received £20billion per year, from the government in subsidy, ever fall dramatically?
This housing system is rigged against those who work hard, save for a rainy day, plan ahead and are sensible.
As someone who knows many landlord, as well as people claiming housing allowance I can tell you the government is very generous.
People with two children in the south are routinely getting £15000 a year. And in london £25000 is not uncommon. This is tax FREE.
This is the biggest subsidy keeping house prices high.
Why do you think rents are rising? Housing Allowance. The landlord asks for more money and the Housing authority pay up, simple. Landlords are relaxed because they know government will not kick tenants out on the street. Even if un-employment rises the government will pay their rent.
The government has introduced a cap at £25k TAX FREE. But this is ridiculously generous.
An experienced teacher/Qualified, experienced Nurse earns around £33k a year before tax or £25k after. Can you imagine a young professional couple with 2 children being able to afford a house with £15k rent? NO But people on benefits can, curtsey of the taxpayer.
How can a market that received £20billion per year, from the government in subsidy, ever fall dramatically?
This housing system is rigged against those who work hard, save for a rainy day, plan ahead and are sensible.
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Comments
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An experienced teacher/Qualified, experienced Nurse earns around £33k a year before tax or £25k after. Can you imagine a young professional couple with 2 children being able to afford a house with £15k rent? NO But people on benefits can, curtsey of the taxpayer.....
This housing system is rigged against those who work hard, save for a rainy day, plan ahead and are sensible.
Welcome to Socialism 101. Those that work hard pay for those that can't or won't work.
Most people have no problem paying for the former but would rather not pay for the latter.
The British/English Government has tried and failed to make a distinction between the two groups since 1601 at least without much luck.0 -
Supporting lazy dolites is like reverse eugenics. Breeding bad genes amongst the detritus of our society. Remove their funding, and you incentivise the successful to breed.
I dont see China suffering the same social "issues" we do.0 -
Supporting lazy dolites is like reverse eugenics. Breeding bad genes amongst the detritus of our society. Remove their funding, and you incentivise the successful to breed.
I dont see China suffering the same social "issues" we do.
Perfectly true. It's a bit tough if little Jimmy's mum can't afford his asthma inhalor(SP?) though.0 -
It must also be pointed out that you can be working in a minimum wage job and still claim housing benefit/LHA.
It is not just claimed by those out of work.
Also, 15k a year is only in high rent areas....I live in the south of the country and my rent is a third of this figure, social housing I grant you but as another example, my brother private rents a very large 1 bedroom ground floor flat with sea views and garden and that is also less than a third of the 15k (and he claims no housing benefit/LHA).
An average sized 3 bedroom property, private rent here is currently just under half of 15k but there are cheaper ones which are not in particularly good areas or are smaller.We made it! All three boys have graduated, it's been hard work but it shows there is a possibility of a chance of normal (ish) life after a diagnosis (or two) of ASD. It's not been the easiest route but I am so glad I ignored everything and everyone and did my own therapies with them.
Eldests' EDS diagnosis 4.5.10, mine 13.1.11 eekk - now having fun and games as a wheelchair user.0 -
Perfectly true. It's a bit tough if little Jimmy's mum can't afford his asthma inhalor(SP?) though.
Right initial but wrong first name in my case but yes, I would be beggered if we couldn't get the inhalers.
Youngest has three of the beggers and without them, he would not be here.We made it! All three boys have graduated, it's been hard work but it shows there is a possibility of a chance of normal (ish) life after a diagnosis (or two) of ASD. It's not been the easiest route but I am so glad I ignored everything and everyone and did my own therapies with them.
Eldests' EDS diagnosis 4.5.10, mine 13.1.11 eekk - now having fun and games as a wheelchair user.0 -
Did you know the government paid £20 billion in housing benefits in 2009. And as rent/unemployment has risen over the last year that figure could be even higher last year. 40% of rents are paid by housing allowance.
As someone who knows many landlord, as well as people claiming housing allowance I can tell you the government is very generous.
People with two children in the south are routinely getting £15000 a year. And in london £25000 is not uncommon. This is tax FREE.
This is the biggest subsidy keeping house prices high.
Why do you think rents are rising? Housing Allowance. The landlord asks for more money and the Housing authority pay up, simple. Landlords are relaxed because they know government will not kick tenants out on the street. Even if un-employment rises the government will pay their rent.
The government has introduced a cap at £25k TAX FREE. But this is ridiculously generous.
An experienced teacher/Qualified, experienced Nurse earns around £33k a year before tax or £25k after. Can you imagine a young professional couple with 2 children being able to afford a house with £15k rent? NO But people on benefits can, curtsey of the taxpayer.
How can a market that received £20billion per year, from the government in subsidy, ever fall dramatically?
This housing system is rigged against those who work hard, save for a rainy day, plan ahead and are sensible.
Savers had a good deal for years. Why can't you be happy to muck in and help people less fortunate than yourselves for a change? There is more to life than watching you bank balance increase.0 -
Did you know the government paid £20 billion in housing benefits in 2009. And as rent/unemployment has risen over the last year that figure could be even higher last year. 40% of rents are paid by housing allowance.
As someone who knows many landlord, as well as people claiming housing allowance I can tell you the government is very generous.
People with two children in the south are routinely getting £15000 a year. And in london £25000 is not uncommon. This is tax FREE.
This is the biggest subsidy keeping house prices high.
Why do you think rents are rising? Housing Allowance. The landlord asks for more money and the Housing authority pay up, simple. Landlords are relaxed because they know government will not kick tenants out on the street. Even if un-employment rises the government will pay their rent.
The government has introduced a cap at £25k TAX FREE. But this is ridiculously generous.
An experienced teacher/Qualified, experienced Nurse earns around £33k a year before tax or £25k after. Can you imagine a young professional couple with 2 children being able to afford a house with £15k rent? NO But people on benefits can, curtsey of the taxpayer.
How can a market that received £20billion per year, from the government in subsidy, ever fall dramatically?
This housing system is rigged against those who work hard, save for a rainy day, plan ahead and are sensible.
I thought housing subsidy was falling to the bottom quartile and capped in London, why would this support rising rents? or are you just having a rant:)'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
No I think the OP is correct - as a society we have decided that everyone should be housed (seems like the right decision to me) and the mechanism to achieve that is increasing the return on the housing stock by many billions each year which no doubt supports house price levels.
Does anyone have an alternative method of meeting the policy objective?I thought housing subsidy was falling to the bottom quartile and capped in London, why would this support rising rents? or are you just having a rant:)I think....0
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